BRUSSELS/CALGARY, Oct 7 (Reuters) - A European Union plan to
label Canadian tar sands oil as highly polluting as part of its
fight against climate change has been abandoned after years of
opposition from Canada, clearing the way for exports of tar
sands crude to the European market.

A proposal published by the European Commission on Tuesday
removes what could have been an EU obstacle to shipments of the
crude and comes at a time when tensions between the EU and its
top oil supplier, Russia, are running high.

EU sources, speaking on condition of anonymity, said that
given the situation with Moscow, the desire for a trade deal
with Canada had been a factor in the commission's move to remove
the "dirty oil" tag.

Canada and the EU have been working on a trade deal for
several years. EU officials have said a final pact is expected
to be signed next year and become effective in 2016.
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